There are three basic types of competitive market structures
- Fragmented Markets
- Oligopolistic Markets
- Concentrated Markets
Fragmented Markets
In this structure, most of the market is in hands of a large number of suppliers. Such markets are very difficult to control.
Oligopolistic Markets
In this type of structure, market is controlled by a few very large suppliers. Usually this kind of market is capital intensive and operates at a high price margin. But the competition among the top players is fierce.
Concentrated Markets
This type of market is centered mainly in the hands of a single supplier. This is achieved mostly by a technological breakthrough in the past. These companies are vulnerable to upcoming innovation.